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Increased turnover during the first half year

Public Joint Stock Company Grindeks’ net turnover for the first half of 2003 reached 9,539,046 lats, which is 22% more than the figure for the corresponding period of 2002.

Net profits for the period under review come to 935,226 lats, whereasnet profits for the first half of the previous year were 977,309 lats.

The pure profit viability according to the results from the first six months of 2003 was 9.4%. Moreover, projected net turnover has been exceeded by 11% or 959,553 lats. The level of gross profit during the first six months of 2003 reached 33.7%.

„Turnover has increased due to Grindeks’ ability as a manufacturer to adapt to market requirements and high competitiveness of our medicines in global markets,” PAS Grindeks Chairman of the Board, Valdis Jākobsons said of the results, “Sales figures in existing markets for both final dosage formulations and active substances have increased and additionally the company has entered several new markets.”

The sales volumes of final dosage formulations, which make up 72.3% of Grindeks total revenues, rose by 19% in comparison with the corresponding period of 2002. This is primarily attributable to the growth in exports to Russia and the CIS countries, where Grindeks original preparation Mildronate is in particular demand. There has also been a significant increase in the sales volumes of psychotropic and cardiovascular medicines.

Exports of Grindeks’ active pharmaceutical ingredients rose by 38% compared to the first half of 2002. The growth in this particuar area is mainly attributable to the growth of the sales volumes for Mildronate, as well increased export volumes of Ftorafur, Oxitocine and Zopiklon. During the period under review, exports began of the active ingredient Varfarin to the South American markets of Brazil and Uruguay, as well as the supply of Zopiklon to India. The continual growth in the demand for active substances testifies to the potential of this area of the pharmacy business.

“During the first half year, we have worked intensively on cost optimisation, in order to ensure that we are able to invest in the development of plants with the greatest potential and to offer a broader product portfolio. Likewise, we continue to seemutually beneficial co-operation formats with other pharmaceutical manufacturers,” summarises Valdis Jākobsons.